Stay Sharp. Welcome to Executive Edge.
In the 2025 hiring market, there is a shortage of talented finance and accounting professionals and a surplus of companies that need them. This imbalance is reshaping hiring strategies for innovative organizations that want to successfully land top talent.
Adopting a creative approach and focusing on the long-term development of their workforce is essential for businesses to address the talent shortage effectively.
In this edition of Executive Edge, we will explore the causes of the shortage and provide insights on how you can overcome the challenges currently affecting your competitors.
Key Takeaways
- There is a critical shortage of finance and accounting talent.
- A widening skills gap is emerging between retiring executives and up-and-coming leaders.
- Companies are adapting by implementing AI, automation, and robust talent development programs.
- The competition for top talent is driving up salaries and necessitating flexible work arrangements.
What’s Causing the Finance & Accounting Skills Gap?
75% of American Institute of Certified Public Accountants members are over the age of 50.
Fewer college students are pursuing accounting degrees, instead opting for fields they perceive as more dynamic or lucrative. It can be hard for a freshman to see the appeal of the sector when other majors offer more excitement and (seemingly) earning potential.
Simultaneously, many of the industry’s experienced workforce are approaching retirement age. Those nearing retirement age are likely thinking more about succession planning than learning new skills, techniques, or software. The shift is creating a looming knowledge and experience vacuum for companies to cope with.
The number of students choosing accounting as a major has steadily declined over the past decade.
As the demographics of their organizations shift, companies are often struggling to fill the holes left between seasoned professionals and up-and-coming leaders. Finding someone with strong foundational accounting expertise combined with modern technological savviness is challenging.
Additionally, finding the right talent needs to be done while keeping things running smoothly and avoiding disruptions to workflow.
Effective Strategies to Overcome the Talent Shortage
43% of financial decision-makers are increasing investments in automated accounting processes and AI tools to address the accountant shortage.
The best and most innovative companies work smarter, not harder. Many companies are investing heavily in AI and automation technologies to streamline routine accounting tasks.
When not bogged down by delays in information and when bolstered with accurate and timely data, finance leaders have the freedom to focus more on high-impact, strategic initiatives.
Additionally, hiring tech-savvy accounting and finance professionals, or creating new roles for them, is an effective way to help an organization along a digital transformation journey.
Modern finance leaders are leveraging AI and data analytics to drive strategic decision-making.
Organizations are likewise adapting their talent development strategies to include succession planning and leadership development initiatives.
The investment they are making in their people is paying off.
Providing continuing professional development and challenging projects helps employees grow their skills and stay engaged. It also makes them less likely to leave the organization.
There’s also a trend toward fast-tracking high-potential employees into leadership roles, providing them with the necessary support and mentorship to succeed.
Crafting a Competitive Executive Hiring Budget
46% of accountants at private companies are leaving for higher-paying jobs.
Competition for the best and most qualified talent on the market is driving up salaries. Companies are realizing they need to spend more than they did a year ago to successfully find and hire the right talent.
One way they are managing this shift in expectations is with add-ons to compensation packages, sometimes at the expense of other business areas or initiatives. The adjusted priorities can cause delayed investments in infrastructure or technology.
Companies are allocating more resources to competitive salaries, potentially at the expense of other investments.
Another more effective way to obtain top finance and accounting leaders without overstretching budgets is to offer flexible working arrangements. Hybrid and remote working models are enticing and are generally more attractive to candidates than working full-time in the office.
An emphasis on flexibility will give companies access to an expanded talent pool. Companies requiring that employees work full-time in-office have access to a significantly smaller talent pool.
What’s Next for CFOs?
83% of senior leaders report an accounting talent shortage in 2024.
As technology becomes more advanced and as more companies integrate AI into their organizations, the talent shortage will become more pronounced. Both challenges and opportunities will arise for forward-thinking businesses.
Partnering with the right executive search firm is a great place to start building a competitive edge. Transcend Search & Strategy specializes in pairing exceptionally talented finance professionals with companies that want the most strategic leaders.
What’s coming in the next edition of Executive Edge?
In the next edition of Executive Edge, we’ll go into detail about why CFOs with private equity and merger and acquisition experience are in such high demand.
There is more on the current trends in finance and accounting leadership in Transcend Search & Strategy’s market report, Finance & Accounting Trends Shaping the 2025 C-Suite.
Finance & Accounting Trends Shaping the 2025 C-Suite
A Market Report providing Finance & Accounting executives insights on market trends and strategies to set their leadership teams up for success in 2025.
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